January 2013

New-home sales are up 15.3% over the past year, hitting an annual rate of 377,000 in November, according to Census Bureau data. Buyers will welcome new homes with the supply of turn-key homes low.

Price increases are new homes faster than existing, with $246,200 as the median price of a new home in the U.S. for November. This is a 15% increase from the previous year. As supply of new homes increases the prices may go down.

Homes Are Slightly More Expensive

The economy appears to be improving slowly with low interest rates demand has increased slightly. A decreasing supply has raised prices a bit. According to the National Association of Realtors, November was the ninth consecutive month of home-price increases.

According to the IAR’s December 2012 Housing Trends Report the median sale price was $125,000 in December 2012 up from $116,000 in December 2011. The average sale price in December 2012 was $149,946, while the average sale price in December 2011 was just $134,332. Of the 44 local Realtor® boards in the state 33 reported increases in the median sale price in December, and 30 had increases in average sale price.

Although inventory is low the number of sales also went up slightly from last year at this time. This increase is represented by 21 more homes selling last month than in December 2011.

The inventory of homes statewide at the end of December was 17,630. Homes are now on the market an average of 97 days, down 9 days from December 2011. A six

After a number of reports and articles here are some common predictions for the 2013 housing market.

Buyers are no longer in it for the long haul. Today 43% of buyers are not sure how long they will stay in their soon to be new homes, although the typical buyer guesses around 15 years. This means that buyers need something that fits them now, but can be altered for the future. Options may include extra flex space that can be changed to another bedroom or office. A finished or easy to finish basement may be appealing.

More soon to be buyers will do initial housing searches online. According to a number of studies between 82% to 90% of potential buyers look online first. This is why photos and descriptions of the property continue to be so important.

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